Examlex
Which areas are considered the most dominant in the global economy?
Operating Lease
A lease agreement allowing one to use an asset without ownership, typically with shorter terms than a finance lease.
Capital Lease
A lease agreement in which the lessee essentially acquires all the benefits and risks of ownership of the asset, even though legal title may not be transferred.
Lease Inception
The beginning date of a lease agreement when all terms and conditions are established and the lease becomes effective.
Constructive Capitalization
An accounting method that records a leasing agreement as a purchase and leaseback transaction for financial reporting purposes.
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